Is interest guaranteed to be frozen on a dmp?

AGB863

klare wrote:

ive been with the cccs for over 6 months now and lloyds tsb have been absolute b######s ... sorry Lloyds but you have. Everyone else has frozen interest, they did for about 4 months and then turned around whacked on interest and wiped out all the payments we had made via the cccs. they are the most unhelpful people i have ever come across and will do what ever they can to squeeze those last few drops of blood out of you if they can. they also dont follow their own 'we will help you' statement, if they so chose not to ....
somebody give me a gun....


.............and breeeeeeeaaaaaaaaaatttttttthhhhhhhhhhhheeeeeeeee........

PS. apart from the the DMP has helped a lot and the CCCS all deserve knighthoods!!

Working in the area of supporting people with debts I can confirm that the above bank and a number of the main stream lenders tend to do the same, ie they will not freeze the interest until they send out default notices etc etc so that they can make the maximum amount possible on an account

Me_Myself_2

Deleted - friend didn't want info showing

rainbowseeker

Just time to quick post before totting off to work (work, sleep, deal with debts, I want to get off the wheel!!!!!).

Thanks everyone for your input, so basically from what I gather, going on a formal DMP does not guarantee that all the creditors will freeze interest, although best chance of this, and also lessening of stress? So I guess I will carry on by myself for the time being.
You know, it's kinda funny since getting into this mess, although the stress, despair and sheer terror at first (visions of bailiffs or whoever dragging me kicking and screaming into some poorhouse/jail, Victorian style) was overwhelming, I am slowly calming down and after getting clear facts from nationaldebtline and others realise that nothing so dramatic will happen. I am taking things one step at a time and realise that with my debt of £75k, I am in for a long haul flight, and perversely in a strange way I am coming to enjoy the journey because that old saying that what doesn't kill you makes you stronger, yes I am becoming a stronger (and I hope better) person because of this experience. Good luck to all you guys out there, we will get through this!! :rolleyes:

davek1

I've just gone with payplan and they are seeking to get all interest frozen. i wait to find out how succesful this is will let you all know.

super_mario_4

I work for a credit card co in the collections dept. the vast majority of cases on dmps will have frozen interest (although if you offer over 2% of the minimum balance then it wouildnt), however as its been explained to me (i may be wrong) theres no obligation to do it

pixie1

Morning Rainbowseeker,

Its nice to hear that youre feeling better about things, I totally agree with your post I too feel better for getting advice and feel my incontrol. Like you said "what doesn't kill you makes you stronger" .

Keep smiling & stay strong.

rainbowseeker

:j Thanks pixie, you are such a sweet person

And super mario thanks too for that info. Hmmm, interesting, so you say they wouldn't freeze if 2% or more offered, so they reckon few more drops of blood to be squeezed from the stone... :cool:

super_mario_4

Yeah, the logic behind it is that (for my company) 2% is the normal contractual payment which you would pay anyway. so if someone can pay normal payments in line with their original credit agreement then whats the point in freezing interest.

thats for credit cards, as far as im aware for loans, if you offer more than what the loan would be on the maximum term i think the same principles would apply. as effectively you would be saying "payments arent a problem, im just not keen on all that interest".

if someone cant keep up the payments as agreed on the original credit agreement. that credit agreement has to be terminated (basically defaulted) so a long term payment plan can be considered. As the interest was a condition of the original agreement, once that has terminated then they can look to freeze interest.

i may stand corrcted on those points, but its my understanding of how it works

rainbowseeker

Hmmm, interesting, so you say they wouldn't freeze if 2% or more offered, so they reckon few more drops of blood to be squeezed from the stone

]

Ooops! Foot in mouth attack! Sorry, super mario, you work for a cc company, when I said 'they' obviously I didn't mean an attack on you personally.

But hey, how cool and handy to have an undercover guy in our midst! Thanks for your insider info, it's helpful to know what I might expect to happen.

super_mario_4

ha ha! no offence taken....although surely you must have better thinsg to do at 5.04am on sunday morning then posting on here...sleeping for instance?